sa freight coun.infra bklet06

Moving Freight

– Setting a

Strategic Framework

for the Future

South Australia’sFreight Transport Infrastructure

March 2006

Executive Summary

South Australia’s ability to achieve its maximum growth potential is linked to the timelydevelopment of efficient and cost-effective transport infrastructure.

In this update to the inaugural South Australia’s Freight Transport Infrastructure: Principlesand Project Priorities released last year, the South Australian Freight Council (SAFC) hasidentified seven projects which, in its view, are urgently required to ensure the State continuesto grow – free of costly transport bottlenecks that reduce the State’s competitiveness.

The transport initiatives identified by SAFC, with an overall cost in the order of $2.8 to$4.2 billion, comprise the centrepiece of the Council’s submission to the State Governmentwhich has been developing a Transport Plan.

In the absence of financial support for the projects identified, and given that efficienttransport infrastructure is integral to intrastate, interstate and overseas trade, SAFCbelieves the State Government’s Strategic Plan goal of trebling SA’s exports to $25 billionby 2013 will not be realised.

Ensuring the free flow of commercial and private sector transport will also deliver significantenvironmental and social gains for the community with a reduction in greenhouse gasemissions high amongst them.

The Council also believes the Commonwealth Government has “short-changed” SouthAustralia over other States, with the lowest per capita payments for new road and raildevelopments under the Auslink funding program.

Our State has many critically-needed projects that should be more appropriately fundedunder the scheme. With population and economic centres that are widely dispersed, andthe highest road fatality rate per head of population of any mainland state, SAFC believesthe case for increased funding is compelling.

SAFC has a critically important role to play in highlighting the freight and logistics industry’scurrent and future infrastructure needs.

This document – an update of the Council’s highly successful Infrastructure Statementreleased in April 2005 – also includes regional projects and maintenance priorities,gleaned through SAFC’s program of Regional Forums and consultation.

In its submission, SAFC’s members encourage the Government to categorise a number of projects as “Urgent”, including:

• A comprehensive upgrade of the entire North-South Corridor (based around SouthRoad) from the Port River Expressway at Wingfield to the Southern Expressway atBedford Park including grade separation at all intersections;

• Addressing a dire $160 million-plus backlog of road infrastructure maintenance – andgrowing by the day;

• Duplication of the Riddoch Highway in the South East, and construction of bypasses at Penola and Mt Gambier;

• Upgrading the Marion Road/Holbrooks Road/Hanson Road corridor to cater for increasing freight and passenger flows, and to act as an alternative North-South route;

• Completion of the Inner Ring Route, in particular the urgent redesign of the BritanniaRoundabout;

• Completion of the Outer Ring Route, including grade separation at Gepps Cross;

• Commitment to an expanded Passing Lanes and Shoulder Improvements Program toimprove road safety and the interaction of freight and passenger vehicles.

SAFC’s submission is underpinned by a Statement of Principles that highlight the economic,social, and environmental benefits of effective and comprehensive freight transport infrastructure.

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Safe and efficient freight transport is an absolute requirement of today’s world.

It underpins every aspect of the South Australian economy. It must also be provided in a way which is sustainable from an economic, social and environmental perspective.

The provision and maintenance of effective and comprehensive freight transport infrastructure is a core responsibility of government. Achieving a regime that strikes the best balance of air, sea, rail and road transport use throughout the State, interstateand overseas is a fundamental pre-requisite for the economic and social viability of South Australia.

The South Australian Freight Council (SAFC) advises the State and Federal governmentson all aspects of South Australia’s freight-related infrastructure needs. It is focussed onidentifying key freight logistics issues and developing solutions for implementation bygovernments and industry. SAFC’s members are drawn from all industry sectors alongthe supply chain, ranging from buyers and users of freight to freight service providersand governments – both State and Federal.

SAFC has released this position paper – including a prioritisation of South Australia’smost urgent seven projects – to clearly and objectively identify the infrastructure requirements of the State to support the emerging business and community demand for freight movement over the next 20 years.

SAFC has prepared this document to assist governments and other stakeholders by communicating its views on:

• The core principles that must underpin the State’s infrastructure and its management;

• The priorities in infrastructure planning and implementation; and

• A qualitative triple bottom line assessment of the freight infrastructure priorities.

Fundamental ObjectiveThe fundamental objective in the provision of freight infrastructure must be to ensure that South Australia has an efficient, effective, internationally competitive, multi-modal,state-wide freight system to meet the economy’s ongoing and projected freight demands.

Introduction

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Core Principles and Policy Issues:

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Freight Transport Underpins the Community: Freight infrastructure and the industry existto serve the interests and daily needs of business and the community.

• Freight transport is a derived demand – it arises from the original demand from businesses and the community for specific products and their transport and handling.People demand the product, the freight transport sector moves it to them, and it alsoremoves the by-products and waste of the community and manufacturing.

Core Government Responsibility and Community Acceptance: The State and Federal governments have a core responsibility to provide and properly maintain transport infrastructure to meet the needs of the community and the commercial sector today andfor future generations.

• Proper and full funding of transport infrastructure, for new projects and maintenance,must be a first priority of governments. Funding may be by government, through private-public partnerships (PPP) or other funding mechanisms.

• Governments and businesses must raise the community’s awareness and acceptanceof the necessity of transport infrastructure to support the community’s needs. In turn,the community must acknowledge, rather than ignore, the need to allocate substantialgovernment funding for infrastructure as a high priority.

Long-term Confidence and Certainty: Freight infrastructure planning and developmentmust be managed in a manner which provides the community and the business sectorwith the necessary certainty and confidence to undertake sound commercial decisionsand the long-term investments required for the State to be nationally and internationallycompetitive.

• Governments and industry partners must deliver the infrastructure as planned, and on-time, and the network must perform reliably, to the desired standard, on a consistent and sustainable basis.

Freight corridors, infrastructure and precincts must not subsequently be encroached upon

or be denigrated or downgraded by urban sprawl and inappropriate adjacent developments.

Facilitate Multi-modal Balance: The infrastructure assets, policies and regimes implementedby governments must facilitate genuine and effective modal choice and a sound balancein the use of the various modes – air, sea, rail and road.

• The SAFC has no underlying preference for any given mode and it therefore supports,as a fundamental cornerstone, the utilisation of the most appropriate mode(s) for anygiven freight task and region.

• Governments should not artificially manipulate modal choice, through subsidies or othermeans, as this will result in inefficient outcomes, which can only be counter-productivefor the economy and the environment.

• Where governments do exercise their powers in influencing modal choice, it shouldonly do so on a basis that is genuinely commercially sustainable in the medium-to-longterm, as far as freight rates and service are concerned.

SA Urgent and High Priority Projects Map

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Adelaide Urgent and High Priority Projects Map

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Outer Metro, Urgent and High Priority Projects Map

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Priority Projects

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The projects listed below have been assessed and prioritized in terms of their adherenceto the core criteria, and the contribution they can make to the achievement of economic,social and environmental objectives as per a triple bottom line assessment .

1 North – South Corridor

(South Road Upgrade)

Cost: $700 million to $2 billion

Function: The “Spine of Adelaide” for bothfreight and passenger movements, the primary North – South Corridor runs fromthe Port River Expressway at Wingfield, alongSouth Road, to the Southern Expressway atBedford Park.

Delivery Timeframe: All planning – includingcommunity and industry consultation –completed by 2007, with staggered deliveryof corridor projects from 2007 to 2016.

Several elements of this route are at capacityalready, with upgrades to improve trip timesand maximise transport efficiency a critical andurgent need.

While the State Government has announced twosignificant projects to assist in alleviating thegridlock, and they have indicated that a non-stoproute is the ultimate goal, a government visionfor the entire corridor has not been released.

In this policy vacuum, many disparate solutionshave been suggested by various communityand industry groups with price tags rangingfrom $700m to potentially over $2 billion.

Whatever solution is preferred, the free flowingmovement of freight vehicles must form thecenterpiece of the outcome.

2 Accelerated Maintenance

Cost: Over $160 million

Function: Poorly maintained transport networks increase operating costs, discourage business investment and canincrease total maintenance costs. Safetyoutcomes also improve on well-maintainednetworks, as do environmental outcomesthrough smoother running leading toreduced emissions.

The State Government’s Draft Transport Planoutlined the desperate need to alleviate themaintenance backlog on SA roads.

Despite this acknowledgement, the SAGovernment is yet to make the necessary funding increases to clear the backlog and tomaintain the network in a “fit for purpose” condition through its useful life. “Whole of life”costs should be standing policy when fundingnew projects.

Specific priorities within an accelerated maintenance program will also need to be identified, including a plan and funding toaddress the backlog within 15 years.

3 Riddoch Highway Expansion

Ten new Passing Lanes ($10m), ReduceRoadside Hazards ($1.5m), bypasses of keycentres including Penola & Mt Gambier

Cost: $40 million

Leading to Duplication

Cost3: $ 400 million

Function: this key route connects the State’sUpper and Lower South East regions to theDukes Highway and key ports, airports andfacilities. The route also plays a vital role inthe movement of freight within the region,connecting key producing areas to processingfacilities and onwards to the port of Portland.

Improvements such as new passing lanes andtown bypasses are urgently needed, while duplication of the full route is an investment in our future.

Duplication of the relatively heavily traffickedPenola to Mt Gambier section should proceed as a priority

The State’s South East is a key producing region(grain, meat and livestock, seafood, timber andtimber products {including woodchips, paperand panelboard}, horticultural products, wine,dolomite and more) and safety benefits willaccrue from improved interaction betweentrucks and other users, especially tourists visiting the region’s many attractions.

PROJECT NAME & DETAIL REASONING

These projects must be fully-planned including route development, architecture andengineering, and be fully-costed this Auslink period, with all projects (except items 1 and 2 which require larger timeframes) funded and completed by the end of 2009.

URGENT PROJECTS – BRINGING SA IN LINE WITH OTHER STATES

3 Backwater to Benchmark, RAA, November 2005

Priority Projects Continued

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5 Inner Ring Route Completion – Britannia

Roundabout


Function: A fully-functional Inner Ring Routewill increase the efficiency of traffic flowaround the city fringe, improve safety for all road users and create more pleasantstreetscapes for residents and road users.

Road users are receiving a lower return frominvestment due to failure to complete critical,yet minor links on the Inner Ring Route – in particular the Britannia Roundabout.

Considerable investment has been made in this route over recent years (eg: upgrade toRobe Tce, Torrens Rd junction and ongoingworks on the City West Connector). Additionalinvestment is required in areas such as thenotorious Britannia Roundabout for continuingenhancement and upgrades.

Several feasible plans have been put forward,only to be withdrawn soon after. Both thefreight industry and local communities needthis long-term problem fixed immediately.

The Inner Ring Route will be finally completedwith a significant upgrade to that portion whichtravels along South Road (costs included underNorth South Corridor).

4 Marion/Holbrooks/Hanson Road

(Secondary North – South Corridor)

Cost: $110 million

Function: this route serves as a an alternativeroute for North-South freight movement inthe Adelaide metropolitan area. It performsa vital function in linking businesses in thesouth to key facilities in the north, includingrail terminals and the port. Access to AdelaideAirport is also facilitated by this route.

These roads form a secondary North – SouthCorridor in parallel to South Road.

Already on the brink of capacity, this route willlikely be forced to support numerous more vehiclemovements during any upgrade of South Road(including the State Government’s tunnel andunderpass proposal). Currently handling anaverage 20,000 – 30,000 vehicle movements per day, if South Road was constrained by 50% during construction (ie one side at a time) thisroad could be asked to handle an extra 20,000vehicle movements per day. These additionalmovements will include heavy vehicles up toHML B-Doubles, for which the corridor is notcurrently rated.

Upgrade to this corridor will support furtherdevelopment of the Adelaide Airport precinct as per the Master Plan, including the “FreightPark” and is required before construction of the“Airport Connector” (see High Priority Projects).

Specific concerns include the:Marion/Henley Beach/Holbrooks Road junction. Holbrooks/Grange/East Avenue junction.Holbrooks Road Bridge.East Avenue width (2 lanes each way required).Holbrooks Road width (2 lanes each way required).

Priority Projects Continued

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7 Statewide Highway Passing Lanes and

Shoulder Improvements Program.

Cost: $10 million per annum (Additional State funding)

Function: Passing lanes significantly reducethe incidence of head-on collisions, andimprove the interaction of slow movingvehicles (inc trucks) with faster vehicles.Average speed is increased safely, benefitingall road users.

Wider shoulders (at least 1 metre wide) provide a greater leeway in handling errorsbefore a vehicle leaves the pavement surface, allowing time to return to the road.

Engineering improvements (including passinglanes and shoulder sealing) to highways canreduce the number of fatal and serious injurycrashes by up to 40%4 – a massive safety andfinancial saving to the community.

Together, these two improvements will providea large, immediate safety benefit.

Particular attention needs to be paid to:Bordertown – Naracoorte Rd; Sturt Highway (Federal Government works

underway);Riddoch Highway (shoulder improvements to

be undertaken as part of duplication – see item above);

Yorke Peninsula Coast Road (shoulder improvements to standard, multiple passing lanes Ardrossan to Pt Giles);

Eyre Highway (road width).

6 Outer Ring Route Completion – Gepps Cross

Grade Separation

Cost: $45 million

Function: This route performs a role in linking freight entering the city at the TollGate (SE Freeway) to Pt Wakefield and MainNorth Roads at Gepps Cross. The route alsoloops around the city providing alternativelinks between industrial premises and lowering traffic near the CBD.

There are two primary concerns about the current Outer Ring Route– the portion that travels along South Road

(costs included under North-South Corridorproject); and

– the five road Gepps Cross intersection.

The Gepps Cross intersection is difficult to navigate, and creates a major bottleneck forvehicles entering and exiting the inner city area to/from the north. Turning is not permittedfor some vehicle combinations during peaktimes, forcing vehicles to use alternative, lessdirect routes.

Completion of this route will increase the efficiency of traffic flow around the city fringeand to/from the port, airport, rail terminals andkey facilities. It will improve safety for all roadusers including the freight industry.

4 Australian Transport Safety Bureau, 2000, National Road Safety Strategy 2001 – 2010

At a Glance: North – South Corridor

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Adelaide is a north/south oriented city – not surprising considering the geographicallimitations of the ocean to the west and theMt Lofty Ranges to the east.

The primary port and airport, as well as railterminals, are in the central-west area of thecity, with major industrial and employmentareas located to the north and south.

In combination, this makes for a large volume of road vehicles of all descriptionsrequiring north/south transport movements;whether to and from work, to export ports/airports or for commercial reasons.

For this reason, SAFC contends that the fullroute (Port River Expressway to the SouthernExpressway) should be added to the Auslinknational network as soon as possible.

East/west transport is also enhanced by gradeseparated north/south oriented cross routes,reducing long waiting periods at intersections.

Each section of the primary North–SouthCorridor along South Road handles, on average, between 30,000 and 52,000 vehiclemovements each day, with key intersectionshandling higher volumes due to cross trafficand turning vehicles. This route is at

capacity today.

Supporting South Road is the secondaryMarion Road/Holbrooks Road/Hanson Road(MHH) Corridor, handling 12,800 to 45,500vehicle movements per day. This route alsohas problems that require attention.

The State Government has announced twomuch needed projects to alleviate traffic congestion along South Road – a tunnelunder Port and Grange Roads, and an underpass under Anzac Highway.

While these projects will assist in upgrading the corridor, they will not solve the traffic flow problems that extend alongthe full corridor.

Moreover, during the three year construction period for these two key projects, traffic disruption will be exacerbated, with traffic increasingly diverted to alternative routes, such as the MHH corridor.

East Avenue, (Allenby Gardens) – with 12,800 vehicles per day – could be required to caterfor as many as an extra 20,000 vehicles every day during construction of the tunnels.

South Australia’s strong reputation as a place to do business will not be sustainable if wecan not move people to work or goods to export ports efficiently. A visionary solution toprotect and enhance the State’s productivity is needed. A full corridor approach is necessary.

Annual Average Daily Transits (AADT)

At a Glance: $160 Million Road Maintenance Backlog

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“Assets not maintained are assets lost”– LGA Wealth of Opportunities Study

South Australia’s roads are in generally poor condition.

In 20035, State Government figures placed the maintenance backlog at $160 million, withindustry estimates and continued inadequate funding pointing to a substantially higher figure today.

This figure merely covers state and federally-funded roads – not local government roads,which has a maintenance backlog of a futher $105 million6.

Our roads are so poor that Engineers Australia’s 2005 “Infrastructure Report Card – SouthAustralia” recommended that:

“All levels of government must recognise that the amount of funding allocated to the maintenance of infrastructure is insufficient to maintain assets in their current condition, let alone address maintenance backlogs. Therefore urgent steps need to be taken to budget accordingly”

South Australia has the highest number of road fatalities per head of population of anymainland state (9.06 deaths per 100,000 population). In comparison Victoria’s rate is 6.9and New South Wales 7.77.

Where maintenance and pavement repair has been delayed past it’s effective service life, the work and funds required to renew it is more extensive and costly than regular maintenance. The USA Surface Transportation Policy Project found that failure to spend $1 in the 15th year of pavement life (Pavement Condition “Fair”), will require expenditure of $5 within 3 years (Pavement Condition has declined to “Very Poor”).

“Deferring Maintenance costs more in the long term” Chart7

5 Draft South Australian Transport Plan, Department of Transport and Urban Planning 20036 “A Wealth of Opportunities” Local Government Infrastructure Management Group, April 20017 Surface Transportation Policy Project,, http://www.transact.org/library/decoder/roadconditiondecoder.pdf,

accessed 6 Dec 2005

At a Glance: $160 Million Road Maintenance BacklogContinued

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The Chart at above, prepared by the US Department of Transportation shows thatPreventative Maintenance, over time, will result in significant savings8.

In its November 2005 publication, Backwater to Benchmark, the RAA rated the States major road corridors on a scale of 1 – 10.

A road which received a rating of 5 narrowly achieved being regarded as “fit for purpose’’.Only two roads achieved a rating above this mark.

Lane widths (<3.5 metres is inadequate and is the benchmark of the AusLink network), and shoulder seal widths (<1 metre is deficient) were assessed on all roads rated. 68% of the Eyre Highway has a lane width of less than 3.5 metres (2.9 metres for a great distance) whilst only 8% of the route has a shoulder seal of 1 metre or greater. Half of the Sturt Highway has shoulders less than 1 metre, whilst there are significant sectionsof the Stuart Highway with lane widths less than 3.5 metres.

Name To Rating Vehicles Heavy Roadside Rest Shoulder Lane Infrastructure

Per Day Vehicle % Hazards Areas Width Width Issues

Dukes Vic 6/10 1900-3600 29-45% X X Duplication

Sturt Hwy NSW 6/10 1700-8300 16-33% X X X Bypass Renmark;Paringa Bridge

Princes NT & 5/10 2200-4200 17-27% X X X Bypass Hwy (Pt W WA Pt Wakefield– Pt Aug) Duplication

Eyre Hwy WA 4/10 340-900 29-40% X X X Widening

Stuart Hwy NT 5/10 300-700 19-27% X X X

Riddoch Hwy SE SA 5/10 1100-4500 14-21% X X X Overtaking LanesDuplication

Yorke YP 4/10 300-2100 5-5.5% X X Overtaking LanesPeninsula Coast Rd

Barrier Hwy NSW 4/10 340-1200 13-41% X X X Junction with Main North Rd

Main North Mid 4/10 1400-7000 5-7% X X Overtaking LanesRd (Barrier North Edge LinesHwy to Clare) SA Guard Rails

8 US Department of Transportation, Federal Highways Administration (http://www.tfhrc.gov/pubrds/jan00/pavement.htm) accessed 6 Dec 05

Compiled from information contained in Backwater to Benchmark, RAA, November 2005.

High Priority Projects

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Statewide Restricted Access Vehicle (RAV)

Facilitation Program, inc additions to the

Gazetted Restricted Access Vehicle routes, and

improved Parking Bays and Staging Points.

Cost: $10 million per annum

Function: RAV’s facilitate efficient and effectivefreight movements, delivering reduced freightrates and a reduction in the number of truckson the road. Facilities on key freight routes area priority, as is access to key transport facilities,including rail terminals, ports and airports.

Throughout the state, the lack of parking bayssuitable for heavy combination vehicles is aserious safety and regulatory compliance issue.

Truck drivers can not park to gain their regulatedsleep if there are no parking bays!

In addition, some parking bays are not largeenough or designed to permit combinationstraveling on adjacent routes to utilize them –SAFC has had reports of sleeping truck driversbeing moved along due to the parking baybeing deemed unsuitable by local authorities.

Staging points also need to be provided forheavy vehicles wherever a route changes frombeing Gazetted for one RAV type to another. As it is illegal for heavy vehicles to split configurations on a public road verge, areas forthis activity must be provided. Lack of thesefacilities results in inefficient combinationsbeing used, higher costs for consumers andmore trucks in total.

Some additions to Gazetted Restricted AccessVehicle routes are also required.

Back of Hills Route – South

(Ferries McDonald/Kangaroo Road)

Cost: $10 million

Function: The Back of Hills Route links the SEFreeway (near Monarto) to the Sturt Highway(via Sedan). It is already B-Double capable and provides a link for freight to Bypass theAdelaide metropolitan area. This extension ofthe Route to the South links Langhorne Creekand Strathalbyn into the route.

This extension is particularly important for the wine industry, allowing grapes from theLanghorne Creek area to be transported to the primary processing and bottling facilities in Nuriootpa, Angaston and Tanunda (Barossa Valley).

Note: SAFC supports the “outer Back Of Hillsroute” concept preferred by the StateGovernment. This position was reached afterconsultation with community and industry interests in the affected areas at SAFC RegionalForums. While a circuitous route to the BarossaValley, this route is already B-Double capable,allowing valuable transport infrastructure fundsto be spent on other priority projects.

Back of Hills Route – North

(Bower Boundary Road)

Cost: $30 million

Function: The extension of the Back of HillsRoute to the North links Burra via Bower to theSturt Highway (and the Back of Hills route).

This project is important for livestock industriesin particular, linking saleyards and emergingIntensive Animal Keeping Precincts in the Mid-North of the State with existing slaughterand dressing facilities.

Construction of this link, coupled with otherrecent and planned improvements will lead tothe creation of a route from Monarto, throughSedan, Bower and Burra and on to Hallet,Jamestown and Crystal Brook, linking thePrinces Highway (Highway 1) to the SturtHighway and South-East Freeway.


All projects listed as High must be completed by the end of the next Auslink period (2014)to maintain SA’s economic & export competitiveness. In particular, State Strategic Plan

goals, including the initiative to to treble the value of our exports, will not be achievedwithout completion of these projects.

HIGH PRIORITY PROJECTS – MAINTAINING OUR POSITION

High Priority Projects Continued

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Adelaide Airport Freight Facilities

Cost: $Unknown (depends upon developmentsproceeding)

Function: efficient and effective air freight handling.

The Adelaide International Airport Master Planincludes a proposal to develop a freight park onthe eastern side of the Airport. This is importantfor facilitating air freight exports into the future,and achieving the State Strategic Plan exporttarget of a trebling of SA’s export income to $25 billion by 2013.

Efficient connections between the park and thefreight network will facilitate the movement offreight and will assist industry expansion (see“Airport Connector” project above).

Adelaide – Melbourne Rail

(Double stack capability + 1800m train length)


Function: expanded rail access to interstatemarkets and exit/entry points.

This key rail freight route is rapidly approachingcapacity.

Currently the Interstate Main Line (IML) route toMelbourne is constrained by low bridges, shortpassing loops and steep gradients. This meansthat containers on this route can only be singe-stacked, and trains can not reach the fulllegal limit of 1800m, available from Adelaide to Perth, Darwin and Parkes (NSW).

The East – West Rail Corridor (including theAdelaide to Melbourne segment) captures thehighest percentage of total freight of any of theinterstate rail corridors – some 80%. As such, itis in the National interest that these constraintson efficient freight movement are removed.

This route comprises part of the AuslinkNetwork.

Princes Highway Duplication & Enhancement

(Pt Augusta to Pt Wakefield Road including PtWakefield Bypass)

Cost: $470 million

Function: Main road route to Northern andWestern areas of SA, as well as WA and NT.

The Princes Highway is already duplicated from Gepps Cross to just before Port Wakefield.Many passing lanes have been installed overrecent years yet safety is still a major concern.The junction at Pt Wakefield and Kadina roads is notoriously dangerous, particularly duringpeak holiday periods when tourists converge on the Yorke Peninsula.

As the major freight and passenger corridorleading to the North and West, traffic volumeswarrant continuing duplication around Pt Wakefield (through a Pt Wakefield Bypass) to Pt Augusta.

Airport Connector (Richmond Road Extension)

Cost: $10 million (estimated)

Function: Access route to Adelaide AirportFreight Park (concept).

Richmond Road leads to the boundary ofAdelaide Airport – then stops. Adelaide Airportis currently in an important building phase inline with its Master Plan – and this road, built to26m B-Double standard, is important to lead tonew export oriented on-airport freight facilitieslocated on the eastern side of AdelaideInternational Airport.

High Priority Projects Continued

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Dukes Highway Duplication

(Tailem Bend – Victorian Border)

Cost: $400 million

Function: the Dukes Highway links theMurraylands and South East areas of the State to Adelaide, and act as our principal link to Victoria.

Traffic volumes – particularly between TailemBend and Keith – warrant the duplication of thisnational highway.

The Dukes Highway carries high volumes offreight moving to market or exit/entry points(and imports). Key regional produce is funnelledonto this route, and it is therefore significantfrom an economic perspective. Any efficiencyimprovements arising from improved accesswill reduce production costs, and significantsafety benefits will accrue from route duplication.

Sturt Highway Upgrades

(Dual Carriageway Gawler – Nuriootpa & ParingaBridge replacement/remedial engineering)

Cost: $80 million approximately

Function: the Sturt Highway is South Australia’sprimary link to the Barossa, Riverland, and NSW.

This route has arguably the worst safety reputation of any highway in the state. Whilethere is significant ongoing investment in safetyupgrades, principally through the installation of a series of Passing Lanes, much more needs to be done in this area.

The Sturt Highway Deviartion Project (see Projects Underway and Funded) willimprove access from Gawler to Port Adelaide, via Pt Wakefield Rd and the Port River Expressway project.

The Barossa Valley is an important export centre for South Australia, and is Australia’s,leading wine producing area. In combinationwith through traffic, the freight and passengertransport movements from this region throughto Adelaide justify duplication from Gawler to Nuriootpa.

The Paringa Bridge in the Riverland (Renmark to Mildura) reduces speed on a national highway to 30km per hour. Clearly this is animpediment to both interstate and inter-regionaltrade. This bridge needs to be replaced so that traffic can continue along the highwayunimpeded at 100km per hour.

Medium Priority Projects

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South East Rail Stage 1

(Standard Gauge Conversion – Wolseley to Mt Gambier, Mt Gambier to Rennie (SA/Vic Border)

Cost: $20 million

Function: rail access for the South East area (to Interstate Main Line and beyond, as well as to Portland (Vic)

Investor interest in this project appears to havewaned. The $10m contribution offered by StateGovernment has not been taken up.

Nonetheless, the State’s South East makes alarge contribution to Gross State Product, and is faced with a rapidly growing freight task(especially woodchips).

Depending upon woodchip harvesting processesa rail option could offer a viable alternative toroad freight to Portland.

The Victorian Government (and/or PacificNational) would need to contribute to costsassociated with the Rennie to Heywood section,connecting to Portland.

Rail Intermodal terminal development

Cost: $1 million – $20 million each dependingupon development proposed

Function: the establishment of commerciallyviable rail terminals will facilitate achievementof government and community goals relating tomodal shift for freight.

The establishment of commercially viable

rail terminals will facilitate achievement of government and community goals relating to modal shift for freight.

A competitive rail option may also have adownward effect on freight rates as the choicesavailable to industry expand.

While none are “bankable” proposals as yet,terminals have been touted for:

• Northern Adelaide suburbs (perhaps in theEdinburgh Parks, Direk vicinity)

• Southern Adelaide suburbs (perhapsLonsdale area)

• Bordertown

• Loxton

• Mt Barker

• Pt Augusta/Upper Spencer Gulf area

• Mt Gambier (SE area in general)

Nonetheless, SAFC urges caution when considering intermodal terminal establishment(see modal choice discussion).


Projects listed as Medium should be completed by the end of the next Auslink period to maintain the state’s competitiveness and achieve South Australian State Strategic Plan Goals.

MEDIUM PRIORITY PROJECTS – MOVING FORWARD AND GROWING

Underway and Funded Projects

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Outer Harbor Channel Deepening Private – Public Partnership between FlindersPorts and the State Government, allowingaccess by fully laden “Panamax” class (14.2m draft) vessels to the Port’s export areas(Container Terminal, Grain Berth, Car Terminal,Livestock Berth).

Berth extensions are expected to proceed soonafter completion of channel deepening(February 2006).

Port River Expressway Stages 2 & 3

(Road and Rail Bridges)

Principally comprising the Road & Rail Bridgeacross the Port River.

Stage 1 of the Project (road connecting Pt Wakefield Rd to Port Adelaide area) wasopened in 2005.

While SAFC understands that the Governmenthas made a political decision to have openingbridges for area character reasons, the extraapproximately $100 million in construction andoperating costs involved should not be fundeddirect from the Transport budget, nor delayother, more worthy projects such as those listed above.

Any delays in the completion of these bridgeswill lower the return on investment from thePort River Expressway.

Grain Wharf & Rail Infrastructure, Port Adelaide Privately funded and built by ABB Grain Ltd andFlinders Ports, this facility links the Port RiverExpressway to vessels using the new 14.2mPort Adelaide Channel. A vital export link, that willallow Cape-Size vessels to load grain in Adelaide.

Upgrades to the rail corridor on LeFevrePeninsula – funded through ARTC – are necessary to ensure that there are no delays inmoving freight to/from the Outer Harbor area.

Construction of the new grain terminal isexpected to be completed in 2007. CRITICALUpgrades to rail infrastructure along LeFevrePeninsula (Govt funded) will coincide with completion of the grain terminal.


These projects are currently underway, or have been publicly announced with fundingincluded. Completion without delay is considered essential.

UNDERWAY AND FUNDED

Underway and Funded Projects Continued

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Eyre Peninsula Grain Project A State, Commonwealth and Private Partnershipwhich rationalizes the rail corridor and providesfor upgrades to both road and rail infrastructureon the Eyre Peninsula critical for grain exportfacilitation.

Inner Ring Route – City West Connector Connects South Road to Park Terrace, providingan extension to the Inner Ring Route, and link to Torrens Road and Churchill Road routes.

Inner Ring Route – Bakewell Bridge Funding for reconstruction of this road bridgehas been recently announced, including a railre-alignment underneath to support doublestacking of containers – a precursor to theAdelaide to Melbourne Rail project outlined above.

Northern Expressway (Sturt Highway Extension) The planning & consultation stage for this project, which will link the Sturt Hwy to Pt Wakefield Rd, is underway, with fundingcommitted under Auslink.

An upgrade, including widening, of Pt WakefieldRoad from the new Northern Expressway junction to the Port River Expressway alsoforms part of this project.

The likely route, which will ease pressure on the existing Main North Road route, is in thevicinity of Heaslip and Angle Vale Roads.

Auslink or Eastlink – How did we fare?

19

At a national level, the Australian Government has released “Auslink” as its platform for a planned approach to nationally-significant infrastructure development.

While supporting the concept as an otherwise logical and strategic approach, SAFC hasbeen highly critical of Auslink’s gross funding inequities for South Australia.

In light of the huge allocations to the eastern seaboard, we have dubbed the programme“Eastlink”.

SAFC played a key role in the federal pre-election campaign that succeeded in increasingthe State’s initial allocation by $118 million, but this is still grossly inadequate.

A further $112m – or $73 for every man, woman and child in the State – is required to putSouth Australia on an equitable footing with the other States.

The inequitable allocation of Australian Government funding is confirmed by South Australia’s per capital allocation for road and rail infrastructure lagging behindgrants to the other States; after including the $118m extra funds committed during the 2004 Federal Election.

NOTE: Does not include $550m allocation to ARTC for Interstate Rail Track (most of which will be spent in NSW), or $273m funding associated with “national projects”.

SAFC recognises that Auslink is project-based, and that this will mean that in some yearssome States will receive lesser funds, with those funds made up in future years.

Nonetheless, South Australia has been significantly disadvantaged over this five-yearAuslink period.

Therefore, SAFC expects the Commonwealth Government to give this

State a “fairer share” of Auslink II funds, when that is announced in 2008/09

– as well as the $112 million shortfall from the initial Auslink funding pool.

$400 $450 $500 $550 $600 $650 $700 $750 $800 $850 $900

$586.85

$568.84

$811.08

$766.60

$513.84

$628.26

$684.70

$524.49

$557.50

Australia

ACT

NT

TAS

SA

WA

QLD

VIC

NSW

Auslink Funding Commonwealth Land Transport Funding Allocations 2004-05 to 2008-09 ($ Per Capita)

SA Population Share 7.6%SA National Roads 11%SA Regional Roads 15%

SA Share of Auslink Funding6.7%

SA

Based on information from the Auslink Website – www.auslink.gov.au

Auslink or Eastlink – How did we fare? Continued

20

In addition, SAFC stronglybelieves South Australia hasbeen “short-changed” in the definition of the network.Many routes within SA, whichare of national significance,have not been included.

The current Auslink networkfails to recognise that thereare any significant populationor industrial areas south ofAdelaide Airport. Hundreds of thousands of SouthAustralian homes can attest to the blindness of this view,as can many businesses.

In addition, the critical linkbetween the North-SouthCorridor (South Road) and the South Eastern Freeway(route to Melbourne) has been left off the list of eligible corridors. This linkalso completes the “InnerRing Route”.

The Barrier Highway is another case in point. Whilstit is not the key link betweenSA and NSW (that being theSturt Hwy) is plays a key rolefor national East-West freight;, that is freight moving between WA and NT to NSW and the easternseaboard. It warrants listingon the Federal Government’s nationally significant corridors list forming thebasis of AusLink.

At a Glance: How can we afford this?

21

The transport sector in Australia is hit heavily by a raft of taxes and charges, includingregistration and license fees, fines and penalties, stamp duty from compulsory third partyinsurance fees, GST – and the biggest ticket item excise on fuel sales.

Collectively, the State and Federal governments reap $14.6 billion in revenue frommotorists each year, including trucks and work vehicles, through these imposts.

The Federal Government collected about $13.62 billion in fuel excise levies during 2004/05alone, almost $1 billion more than they will return through the entire Auslink programover the next five years.

With this mammoth Federal Government revenue stream, there is no excuse for SouthAustralia not to receive its fair share of the $12.7 billion (over five years) Auslink pie.

Source: RAA, Backwater to Benchmark, November 2005 (using figures published in 2005/06 Budget papers

Source: RAA, Backwater to Benchmark, November 2005

$1268 $1199 $1115 $1174 $169 $189 $182 $187

At a Glance: How can we afford this? Continued

22

As can be seen from the charts above, the State Government also can not justify its failure to allocate adequate expenditure on transport infrastructure in light of the largeand ongoing revenue that it generates for Treasury coffers.

The transport sector will not be able to withstand the burden of funding social infrastructure (schools, hospitals and the like) while its own community resources (roads, railways etc) are under-funded and rapidly deteriorating.

The industry acknowledges that taxes must be raised from somewhere, and the transport sector is an attractive source for governments, but SAFC contends that theindustry is carrying a grossly unfair burden in this regard.

In addition to the revenue already generated from the sector, there are also innovativefunding solutions available to governments and industry.

State Governments can debt fund infrastructure (as is the case with the recentlyannounced South Road tunnel and underpass), and infrastructure bonds may have some appeal in the market. Superannuation funds also are awash with contributions looking for sound investments opportunities.

Public-Private Partnerships (PPP) have been welcomed to a lesser extent in SA than interstate, yet opportunities exist for them to be embraced. The development of theNorth-South Freeway concept is one project that has attracted attention in this regard.

Economic, Social and Environmental factors – The Triple Bottom Line:

23

The following triple bottom line factors must be considered when assessing infrastructureproposals.

Economic

The economic aspects associated with freight transport infrastructure projects take manyforms including:• Investment Attraction – quality infrastructure can be an influencing factor in business

investment decisions;• Business/Operational Aspects – improvements in the cost structure for operators

generally manifest themselves as reduced freight rates, and• Transport activity is an economic activity in its own right, contributing up to nine per

cent of GDP. It therefore warrants close consideration from an economic perspective.

Social

There are significant social benefits arising from freight transport, including the fundamental benefit of support for the quality of life wanted by the community. There are also some costs accruing to society that arise from transport and logistics activity,which include:• Transport Safety – costs associated with individual accidents and injury and death

that occur on the transport network are high; although in the case of road transport for example, evidence clearly indicates the vast majority of such injuries and deathson roads are directly attributable to the behaviour of a small minority. Over 80% of car-truck fatal accidents are caused by a minority of motorist, according the FederalOffice of Road Safety;

• Community Development – the transport network contributes to a community thriving (or not) through benefits such as improved connectivity and positive economic development impacts;

• Community dislocation – especially for rail; and• Costs associated with Regulation – controlling economic, social and environmental

outcomes (eg: Adelaide Airport Curfew limits levels of service and flexibility availableto get product to market);

Share of GDP

Rest

56%

Mining, Construction and Utilities

12%

Wholesale and Retail Trade

11%Logistics

9%

Manufacturing

12%

Source: BTRE Working Paper, Logistics in Australia, October 2001 (based on 1999-2000 GDP) figures.

Economic, Social and Environmental factors – The Triple Bottom Line: Continued

24

Environmental

There is increasing concern in the community regarding the negative impacts of inefficientfreight transport activities on the environment, including:• Greenhouse Gas Emissions – There are many misconceptions around environmental

issues, including that road transport is a major contributor to greenhouse gas emissions.In reality, transport as a whole contributes less than 17%, including just six per cent

from heavy vehicles, with light commercial vehicles and cars contributing significantlymore. Nonetheless, freight transport is increasingly a target because its activities aregrowing and highly visible.

• Noise – some transport activities are noisy. Efforts to create buffers between thetransport network and the community should be encouraged along with the adoptionof improved and quieter technologies within the freight transport sector;

• Amenity – Amenity can also be affected by freight activity, especially along key corridors and at key facilities. However, such activity is generally crucial to the efficientfunctioning of freight networks and systems, and governments should adopt andactively pursue a policy of ensuring that the community is aware of, and accepts, thevital support role played by Freight Transport in their daily lives. Governments couldthen implement sound infrastructure planning by quarantining designated freight corridors from unwarranted constraints and regulations that are imposed in responseto community concerns, often arising from subsequent urban development along thefreight routes.

• Alternative Fuels – limited supply networks, conversion and operating costs oftenmake these technologies prohibitive; and

• Larger Units/Vehicle Combinations – represent an opportunity to improve environmentalperformance (as well as economic and social outcomes) through reductions in thenumber of units required to perform a given task, and reduced unit freight costs.

Providing the right infrastructure and regulatory regime will facilitate the potentialimprovements in the environmental performance of the freight transport sector.

AIR

ROAD

RAIL

SEA

INCREASINGEMISSIONS

Greenhouse Gas Emissions Per Tonne of Freight Moved

Core Infrastructure Criteria

25

Given these factors, the aim must be to ensure that South Australia has freight transportinfrastructure that meets the following criteria:

• Is efficient and effective;– Efficient and adequate freight infrastructure advantages the entire community by

reducing costs and increasing economic viability through:• Decreasing congestion which, in turn:

– Decreases safety risks, and – Decreases the adverse environmental impacts of fuel and noise emissions.

• Is fit for the purpose; it is able to accommodate the desired task and reliably performat the level of safety, efficiency and effectiveness demanded by industry.

• Facilitates internationally competitive transport outcomes including:– Access – meeting the accessibility requirements of industry, including connectivity;– Accommodating the vehicles, trains, vessels, and aircraft that industry requires

now, and in the future, to remain competitive in their markets;– Competitiveness / pricing – freight logistics costs are a significant component of

overall manufacturing and commodity costs and as such the marketability of theproducts is very sensitive to increased freight transport costs. Freight transportcosts must be kept to an absolute minimum to avoid any negative impact upon the competitiveness of South Australian (and Australian) products in their markets;

– Be attractive to business and potential investors in the State; and– Delivering Competitive Advantage to SA businesses by being efficient and effective

in international markets.

• Is genuinely multi-modal and provides for efficient modal-interchange;

• Is state-wide and supports connectivity – facilitating seamless statewide linkages, as well as to interstate and international markets with appropriate inter-state and international linkages;

• Provides the capacity to meet ongoing and projected freight demands of the communityand the economy;

• Provides the flexibility to facilitate a responsive freight transport system capable ofmeeting emerging needs and trends;

• Optimises the balance between freight transport logistics and appropriate and sustainable environmental and social outcomes;

• Supports economic development so that industry can, as a minimum, compete on a level playing field in its markets;

• Is funded for the life of the project and the asset – both new infrastructure, and importantly, the maintenance of existing infrastructure for its effective working lifemust be fully funded; and

Is sustainable in economic, social and environmental terms, as well as for individuals.

For further information, contact the South Australian Freight Council

on (08) 8447 0688 or www.safreightcouncil.com.au

sa freight coun.infra bklet06

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